Patton Fund Management Inc

All performance data is simulated.  These are NOT actual returns.  Returns are based on the asset allocation of the portfolio.  Returns for each asset class are based on the actual performance of an index or index fund designed to represent that given asset class (see below).  Calculations assume the portfolio is rebalance monthly.  Estimates for fees are deducted from performance.  Click here to view our full disclosure including discussion of back-tested simulated returns.

The following are the assumptions used to calculated the simulated performance:

Following is.a sample performance calculation of a simulated portfolio:

• Allocation: 50% U.S. Large-cap Stocks and 50% U.S. Small-cap Stocks
• Portfolio Holdings Starting Values: $50,000 in U.S. Large-cap Stocks and $50,000 in U.S. Small-cap Stocks
• Performance of Holdings: U.S. Large-cap Stocks up +5.0% and U.S. Small-cap Stocks +7.0%
• Change in Holdings Values: U.S. Large-cap Stocks +$2,500 and U.S. Small-cap Stocks +$3,500
• Portfolio Return: $100,000 Starting Value + $6,000 in Holdings Change = $106,000 or +6.0%
• If fees are 0.1% for the period, the return would be +5.9%

Patton Fund Management, Inc. is a Registered Investment Advisor (RIA) with the U.S. Securities and Exchange Commission (SEC).

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IMPORTANT NOTICE: INFORMATION ABOUT PAST PERFORMANCE

Not indicative of future returns. Past performance is not indicative of future returns, which may vary. Accordingly, future returns are not guaranteed and there can be no assurance that any Patton Fund, Strategy, or Portfolio (“Patton Investments”) will achieve comparable investment results or its investment objective. You may lose money on your investment in a Patton Investment.

Strategy Developed based on Back-testing. The investment strategies used by Patton were developed, in part, by back-testing its investment program against past market and economic conditions.  In other words, the strategies were designed to succeed based on knowledge of events that occurred in the past.  One limitation of such a strategy is that it is inherently focused on the past, and cannot necessarily take account of market and economic conditions that may arise in the future.  If future market and economic conditions are different from past market and economic conditions, and if investors behave differently from past investors, Patton’s investment strategies may not work as anticipated and the Strategy, Fund, or any Patton Investments, may lose money.

Fees and Distributions. The performance information shown reflects the deduction of actual expenses of the applicable Patton Investment for periods during which the Patton Investment has been in operation (see below). The performance figures shown reflect the reinvestment of all dividends, interest and other income, and assume that the applicable Patton Investment has not made any distributions to investors.  Estimated fees and expenses including brokerage commissions, borrowing costs, and advisory fees, have been deducted from all back-tested performance.

Portfolio Characteristics. Portfolio characteristics, including specific holdings, contributors to performance, and country, sector and industry exposure, are shown as of the date indicated only, and are subject to change without notice. Portfolio characteristics are designed to illustrate the application of the Patton Investments’ investment style only, and should not be considered a recommendation.

Third Party Information. Information contained herein is based on data obtained from statistical services, company reports or communications, or other sources. Patton Fund Management believes these sources to be reliable. However, we have not verified this information, and we make no representations whatsoever as to its accuracy or completeness.

IMPORTANT NOTICE: INFORMATION ABOUT BACK-TESTED PAST PERFORMANCE

Performance results may be presented that pre-dates the commencement of operations of a Patton Investment Strategy. Because the Patton Investment Strategy was not in operation during certain periods shown, the performance information prior to the date the Patton Investment Strategy commenced operations is back-tested performance (sometimes referred to as hypothetical performance).

Patton Investment Strategies Inception Dates (first full month)

• Patton 45: April 2001 (not open to new investors)
• Patton Edge Strategy: February 2010
• Patton Flex Strategy: February 2010
• Audacity Strategy: April 2020

There are several important factors to consider when reviewing back-tested, or hypothetical, performance information:

Back-tested Performance is Hypothetical. The performance information shown for the Patton Investment Strategy you select includes performance information that is hypothetical, and is not real nor based on an actual portfolio managed by Patton. As such, the back-tested portion of the performance presentation does not represent the investment performance or the actual Patton Investment Strategy or any investors in the Patton Investment Strategy. The securities in these hypothetical portfolios were selected with the full benefit of hindsight, after their performance over the period shown was known. It is not likely that similar results could be achieved in the future.  The back-tested results may not reflect the impact that any material market or economic factors might have had on the results if the Strategy had been used during the period to actually manage client assets.  Furthermore, back-testing does not reflect how Patton actually might have reacted when managing client investments to economic and market events. The hypothetical portfolios presented here are purely illustrative, and representative only of a small sample of possible future scenarios.

Back-testing is Subject to Limitations. While it is believed that back-tested performance information presented is relevant to evaluating an investment in the Patton Investment Strategy, no representation is or could be made that the information presents what the performance results would have been in the past or are likely to be in the future. There are frequently sharp differences between hypothetical performance results and actual performance results subsequently achieved. One limitation of hypothetical performance is that it is generally prepared with the benefit of hindsight. In addition, no hypothetical track record can completely account for the impact of financial risk in actual trading. For example, back-factors that affect markets in general, the impact of fees and expenses, market liquidity and other factors may all have affected actual performance.

Actual Investor Experience Varies. The back-tested results are not indicative of the skill of Patton. For example, each Patton Investment Strategy began trading on the date indicated above. Back-tested performance shown for each Patton Investment Strategy reflects hypothetical performance determined using the current investment strategy of the applicable Patton Investment Strategy. However, Patton has been managing money using quantitative strategies since 2001.  During this period Patton has experienced periods of poor performance and Patton has closed other Patton Investment Strategies that it has managed as a result of poor performance.  Investors in some of Patton’s closed Strategies (and funds) have lost money.

Back-testing Period.  During the back-tested period, Patton was either not providing investment advice or was not providing investment advice according to the Strategy used to calculate the back-tested results.

Indices. The historical performance of various indices, such as the S&P 500 Index, may be included. An index is an unmanaged, broad-based market index and investing in any Patton Investment Strategy is not similar to investing in an index. An index is not available for direct investment, and the securities in an index will not match the Strategy's holdings. In addition, unlike an index, the Strategy's performance will be affected by fees and expenses.

Forward-looking Statements. Any forward-looking statements represent the subjective views of Patton and their validity may be affected by events and conditions not now contemplated and by other factors, many of which may be beyond Patton's control. Actual results may vary and such variations may be material, and no representation or warranty is made regarding any forward-looking information contained herein.

Patton Strategy Composites

Patton Edge Strategy Actual Results. Performance results for February 2010 forward represents a dollar-weighted average of all accounts utilizing this strategy.  The net return is the gross return reduced by 1/12 of 2.0% monthly.  NOTE - an enhancement was made to the Strategy in March 2021 that is expected to have a meaningful impact on the performance of the Strategy in the future during the early months of a bull market.

Patton Edge Performance Statistics:

Start	End	Composite Return	Portfolio Count	Portfolio Count (End Period)	End Capital
12/31/2010	12/31/2011	9.53	3	8	1,692,849
12/31/2011	12/31/2012	11.26	5	8	1,683,360
12/31/2012	12/31/2013	27.11	6	11	2,236,018
12/31/2013	12/31/2014	11.93	8	14	1,188,751
12/31/2014	05/31/2015	0.00	14	17	1,697,507
12/31/2014	12/31/2015	5.29	13	19	1,656,694
12/31/2015	12/31/2016	-5.88	15	28	2,558,860
12/31/2016	12/31/2017	18.60	23	31	2,675,077
12/31/2017	12/31/2018	-4.54	14	18	994,749
12/31/2018	12/31/2019	15.06	14	14	841,753
12/31/2019	12/31/2020	-0.41	12	12	573,401
12/31/2020	12/31/2021	10.79	10	10	597,863
12/31/2021	12/31/2022	1.94	8	8	441,354
12/31/2022	12/31/2023	4.22	6	6	360,066

Patton Flex Strategy Actual Results. Performance results for February 2010 forward represents a dollar-weighted average of all accounts utilizing this strategy.  The net return is the gross return reduced by 1/12 of 1.5% monthly.  A performance-based fee structure is charged to some investors utilizing the Patton Flex Strategy that could result in higher fees than 1/12 of 1.5% annually.  NOTE - an enhancement was made to the Strategy in March 2021 that is expected to have a meaningful impact on the performance of the Strategy in the future during the early months of a bull market.

Patton Flex Performance Statistics:

Start	End	Composite Return	Portfolio Count	Portfolio Count (End Period)	End Capital
01/31/2010	12/31/2010	13.85	1	1	1,142,400
12/31/2010	12/31/2011	22.48	1	1	1,739,954
12/31/2011	12/31/2012	34.24	1	1	3,114,146
12/31/2012	12/31/2013	68.92	1	1	5,074,023
12/31/2013	12/31/2014	22.43	1	1	11,795,197
12/31/2014	12/31/2015	25.79	1	1	24,493,849
12/31/2015	12/31/2016	-7.66	1	6	31,760,856
12/31/2016	12/31/2017	40.16	4	16	54,716,935
12/31/2017	12/31/2018	-13.95	15	42	61,359,349
12/31/2018	12/31/2019	17.73	29	45	79,211,768
12/31/2019	12/31/2020	-2.69	36	47	74,874,709
12/31/2020	12/31/2021	29.15	34	47	92,471,626
12/31/2021	12/31/2022	-2.55	41	49	88,897,349
07/31/2022	12/31/2022	-5.97	45	50	88,900,320
12/31/2022	12/31/2023	2.62	42	52	91,036,035

Audacity Performance Actual Results. Performance results for April 2020 forward represents a dollar-weighted average of all accounts utilizing this strategy. The net return is the gross return reduced by 1/12 of 4.0% monthly. A performance-based fee structure is charged to some investors utilizing the Audacity Strategy that could result in higher fees than the monthly management fee deducted from this data.  NOTE - an enhancement was made to the Strategy in March 2021 that is expected to have a meaningful impact on the performance of the Strategy in the future during the early months of a bull market.

Audacity Performance Statistics:

Start	End	Composite Return	Portfolio Count	Portfolio Count (End Period)	End Capital
03/31/2020	12/31/2020	8.96	2	2	7,437,680
12/31/2020	12/31/2021	49.97	2	2	9,652,268
12/31/2021	12/31/2022	-7.29	2	2	11,523,894
12/31/2022	12/31/2023	-3.24	2	2	11,373,001

Notes about Composites:

• "n/a" - Not statistically meaningful due to insufficient number of months.
• Dispersion: Performance dispersion is calculated annually.  Portfolios are only included that were in the strategy for the full year.  Dispersion is calculated by subtracting the lowest portfolio return from the highest portfolio return.
• Benchmark Description: The benchmark is the HFRX Equity Hedge index obtained from www.HedgeFundResearch.com.  This is an investable index of long/short U.S. equity hedge funds.  Its composition of securities and risk profile could be meaningfully different than the Patton Investment Strategy.
• The above composite performance presentation for the Patton Edge Strategy and the underlying methodology used was independently verified by Ashland Partners only for the period through 12/31/2014.  The above composite performance presentation for both the Patton Flex Strategy and Audacity Strategy and the underlying methodology used are identical to that of the Patton Edge Strategy.
• Leverage: the Patton Edge Strategy can have up to two times gross exposure; the Patton Flex Strategy can have up to five times gross exposure; the Audacity Strategy can have up to eight times gross exposure.
• The Patton Flex Fund, L.P., utilizing the Patton Flex Strategy, has a 0% management fee, 12% net annual hurdle, and a 50% incentive fee above the annual hurdle.  See the Fund's Private Placement Memorandum for details.  This fee structure can result in a meaningfully different net performance for investors.
• The Audacity Fund, L.P., utilizing the Audacity Strategy, has a 2.0% management fee, 0% net annual hurdle, and a 20% incentive fee above the annual hurdle.  See the Fund's Private Placement Memorandum for details.  This fee structure can result in a meaningfully different net performance for investors.
• Audacity Strategy Back-tested Performance: all performance is shown net of a 4.0% annual management fee.  The Strategy is also offered with a 2.0% annual management fee and a 20% annual performance fee on all gains above 0%.  Based upon research the 4.0% management fee structure is expected to be the lesser costly of the two fee structures.
• Accounts are generally added to a Composite for the first full month invested and removed after the last full month invested.
• The Strategy is sometimes carved out of accounts that contain other assets.

General Information

This website content is subject to change without notice and, due to the rapidly changing nature of the security markets, may quickly become outdated. All materials presented are compiled by Patton from sources believed to be reliable and current, but accuracy cannot be guaranteed. This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.  Content is prohibited from being reproduced.

Diversification does not ensure a profit or protect against a loss in a declining market.

Investments involve risk and unless otherwise state, are not guaranteed.  Consider the investment objectives, risks, and expenses carefully before investing.

Readers of the information contained on this website should be aware that any action taken by the viewer/reader based on this information is taken at their own risk. This information does not address individual situations and should not be construed or viewed as any type of individual or group recommendation. Be sure to first consult with a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.

Exchange-Traded Funds and Index Mutual Funds (“Index Funds”).  All Index Funds are subject to risk, which may result in the loss of principal. International Index Funds involve additional risks, including currency fluctuations and political uncertainty. Index Fund products that invest in emerging markets are generally more risky than those that invest in developed countries because countries with emerging markets may have relatively unstable and less-established markets and economies. Sector Index Funds are subject to sector risks and non-diversification risks, which may result in performance fluctuations that are more extreme than fluctuations in the overall stock market. In addition, sector Index Funds that sample their target indexes to comply with tax diversification rules may experience a greater degree of tracking error than other Index Funds. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.

Source Data for Analysis

Any analysis reflecting daily performance for any Patton Investment Strategy is an actual data for the periods available and back-tested data for prior periods.  Daily data for diversified portfolios uses an applicable index fund (see the Asset Classes table in this Disclosure "Index Fund" column) performance less the applicable fees.

Mutual fund performance and performance statistics come from Steele Mutual Fund Expert (https://steelesystems.com/).

Asset Classes

The following table shows the Asset Classes that are available throughout the website, the market index that is used to represent each asset class, and the estimated fee that is deducted from the performance of the index.

The following table shows the Asset Classes that are available throughout the website, the market index that is used to represent each asset class, and the estimated fee that is deducted from the performance of the index.

Click here to access our full disclosure.